Chemical Fertilizers Sector: Growth Drivers and Challenges
Growth Drivers
- Rising Urbanization – Growing demand for agricultural products across the country and rising disposable income contribute to this trend. Over the next ten years, there will be a 15% increase in global demand for agricultural products.
- Availability in varied forms – Chemical fertilizers are also used in the form of liquid fertilizers that can be utilized in fertigation, foliar feeding, and other applications. Liquid fertilizer, on the other hand, reduces nitrogen losses while increasing functionality. Additionally, liquid fertilizers can be administered in a single pass along with other dietary supplements and protection products. Savings in time, fuel, labor, and pollution are the result of this resulting in the growth of the chemical fertilizers market.
- Surging Population - Global market trends have been influenced by the usage of chemical fertilizers to increase crop output due to the rising global population and the scarcity of arable land. According to reports, chemical fertilizers are utilized to increase the naturally occurring productivity of young-of-year culture organisms that aid in crop growth. Aside from this, the production of rice bran, dried grains, and cottonseeds is increased by using organic fertilizers in conjunction with chemical fertilizers.
Challenges
- High cost of raw materials - The explosive growth of the global chemical fertilizers business will be slowed down by high raw material costs and rigorous regulatory regulations governing the release of volatile compounds into the atmosphere.
- Rise in the usage of natural fertilizers and green products.
- Presence of substitute products in the market
Chemical Fertilizers Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.3% |
|
Base Year Market Size (2024) |
USD 190.97 billion |
|
Forecast Year Market Size (2037) |
USD 606.77 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2025, the industry size of chemical fertilizers is evaluated at USD 220.44 billion.
The chemical fertilizers market size was over USD 190.97 billion in 2024 and is projected to reach USD 606.77 billion by 2037, witnessing around 9.3% CAGR during the forecast period i.e., between 2025-2037. Government subsidies, surging population attributing for food production and availability in varied forms will drive the market growth.
Asia Pacific industry is predicted to dominate majority revenue share of 35% by 2037, driven by rising exports of agricultural and processed food products in the region.
The major players in the market are Nutrien Ltd, The Mosaic Company, Uralkali, Yara International ASA, Haifa Negev technologies LTD, Israel Chemicals Ltd., EuroChem Group, OCP SA, Syngenta Crop Protection AG, K+S Aktiengesellschaft
